The Pakistan Sugar Mills Association (PSMA) has called on the government to approve the proposed deregulation policy for the sugar sector, saying it would help sugarcane growers secure better prices and strengthen the industry’s competitiveness in global markets.
In a statement, a PSMA spokesperson said that farmers benefited from improved sugarcane rates last year due to minimal government intervention and the cooperative role of the Punjab and Sindh administrations.
The association argued that Pakistan’s sugar industry has long operated below its crushing capacity and cannot compete internationally unless the sector is fully deregulated. It warned that continued government controls could discourage cultivation, lower production, and eventually force sugar imports — increasing the burden on the national exchequer.
The PSMA noted that since the government abolished sugar mill zones, the development of the sugarcane crop has slowed. It cited the rice and maize sectors — both deregulated — as examples of how free-market principles can enhance production and exports. “After deregulation, the rice sector alone adds nearly USD 4 billion annually to the national exchequer,” the statement said.
The association added that early deregulation would align the interests of sugarcane farmers and mills, improving cooperation and contributing to Pakistan’s overall economic growth.
